TORONTO, Sept. 30, 2019 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has completed its previously announced disposition of a 30 property portfolio (the "Portfolio") for an aggregate sale price of approximately $426 million (the "Transaction") to an affiliate of Oak Street Real Estate Capital LLC.
The unencumbered Portfolio consists of 27 stand-alone retail properties and 3 distribution centres with an average lease term of approximately twelve years with Loblaw Companies Limited. The Portfolio was sold at slightly above its IFRS carrying value and the proceeds from the Transaction will be used to repay debt.
About Choice Properties Real Estate Investment Trust
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 727 properties totaling 65 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity‐based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.
About Oak Street Real Estate Capital
Oak Street Real Estate Capital is a real estate investment management firm based in Chicago, Illinois, USA. Oak Street manages both commingled funds and separate accounts on behalf of both institutional and high net-worth investors. The firm focuses on acquiring properties net-leased to investment grade rated tenants and specializes in providing unique and flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities, and government entities. For more information on Oak Street, please visit www.oakstreetrec.com.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' current Annual Information Form and Second Quarter 2019 Report to Unitholders. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.
SOURCE Choice Properties Real Estate Investment Trust